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5 July 2017
Kanawha County man sentenced to federal prison for possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was sentenced today to six months in federal prison for possessing stolen mail, announced United States Attorney Carol Casto. Jason Lee Spradling, 34, of Pinch, was also ordered to pay $4,489.32 in restitution.
Spradling admitted that he possessed a large quantity of stolen mail, and that he knew the mail in his possession had been stolen. Spradling admitted that in December 2015, he stole a box of checks from a mailbox and attempting to cash one of the checks. Spradling also admitted that in July 2015, he was found in possession of hundreds of pieces of mail stolen from the Elkview area. Law enforcement found the stolen mail in a car Spradling was driving. Spradling further admitted that he had no legal right to possess the mail, nor to cash any checks contained within the stolen mail.
The United States Postal Inspection Service and the Kanawha County Sheriff’s Office conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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Jonesboro Man Sentenced to More Than 21 Years on Multiple Child Pornography ChargesRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, announced today that Steven Thorpe, 44, of Jonesboro, will spend more than 21 years in federal prison for advertising child pornography.
A federal grand jury indicted Thorpe on April 8, 2015, for one count of advertising child pornography and one count of possession of child pornography. On August 15, 2016, he pleaded guilty to possession of child pornography, and on February 9, 2017, he pleaded guilty to advertising child pornography.
Chief United States District Court Judge Brian S. Miller imposed the sentence of 262 months for both counts. There is no parole in the federal system. When Thorpe is released upon completion of his sentence, he will remain on supervised release for the rest of his life. Conditions of his supervised release include registering as a sex offender and having no contact with minors under the age of 18.
The investigation into Thorpe’s crimes began in June 2014, when two people brought Thorpe’s phone and computer to the Jonesboro Police Department and reported that they had seen sexually explicit photos of a minor on Thorpe’s phone. Jonesboro police obtained a search warrant, and when they searched the phone, investigators found over 20,000 images of child pornography.
The United States Secret Service then obtained a search warrant for Thorpe’s laptop computer, which contained over 1,400 images of child pornography. In addition to the photos of children being sexually abused, agents also discovered that Thorpe had accessed online chatrooms through a computer program called Gigatribe. In these chats, Thorpe advertised to other users that he had child pornography available, including “doctor/patient, dad/son, hidden cams, massage,” and “getting caught, locker/school rooms, and public videos.” Thorpe would then send other users a link to a folder containing his child pornography along with his password, “boys777.”Thorpe is still facing multiple state charges, including pending sexual assault and additional possession of child pornography charges in Craighead County.
The case was investigated by the Jonesboro Police Department and United States Secret Service, and was prosecuted by Assistant United States Attorneys Allison W. Bragg and Kristin Bryant.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
Acting United States Attorney Duane A. Evans announced that MARLIN CACERES-GUERRERO, age 28, a native of Honduras, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Court Judge Ivan L.R. Lemelle sentenced CACERES-GUERRERO to 5 months of imprisonment, followed by one year of supervised release, and a $100 special assessment fee. CACERES-GUERRERO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on February 21, 2017, CACERES-GUERRERO was found in the United States after having been previously deported from the United States on May 3, 2013.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Harrison County woman admits to conspiring with others to distribute illegal drugsRead the Press Release
CLARKSBURG, WEST VIRGINIA – Megan Eileen Dunigan, 29, of Mount Clare, West Virginia, was convicted today in federal court of possession and distribution of an illegal substance, Acting United States Betsy Steinfeld Jividen announced.
Dunigan pled guilty to one count of “Conspiracy to Distribute and Possess with Intent to Distribute MAM2201 and Buprenorphine.” She admitted to having conspiring with others to distribute illegal substances in Harrison County, West Virginia from April 2014 to April 2016.
Dunigan faces up to 10 years incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The U.S. Postal Inspection Service, The West Virginia State Police, and the Greater Harrison Drug & Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.Fort Wayne Man Sentenced to 72 Months ImprisonmentRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Stephan Davis, age 30, of Waterloo, Indiana, was sentenced before United States District Court Judge Theresa Springmann to being a felon in possession of a firearm.
Davis was sentenced to 72 months imprisonment and 1 year of supervised release.
According to documents filed in this case, on or about May 20, 2016, Davis possessed a .40 caliber firearm and eight rounds of ammunition in Kendallville, Indiana after having prior felony convictions in Dekalb County, Indiana.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Kendallville Police Department and was handled by Assistant United States Attorney Stacey R. Speith.
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Fort Thompson Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Conrad James Medicine Crow, age 45, was sentenced to 21 months in custody, followed by 24 months of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Medicine Crow was indicted by a federal grand jury on October 12, 2016. He pled guilty on April 11, 2017.
The conviction stemmed from an incident on August 16, 2016, when Medicine Crow had been drinking alcohol. The victim had been walking on the side of the southbound lane of the highway when she saw a silver minivan approach her in the southbound lane and hit her. The van, driven by Medicine Crow, did not stop and fled the scene. As a result of the crash, the victim suffered serious bodily injury.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Medicine Crow was immediately turned over to the custody of the U.S. Marshals Service.
Former president of Streetsboro tire company indicted for fraudulently avoiding nearly $10 million in taxesRead the Press Release
The former president of a Streetsboro company was named in a 51-count indictment for allegedly filing fraudulent paperwork to avoid paying nearly $10 million in taxes and tariffs, said Acting U.S. Attorney David A. Sierleja.
Indicted are: James Pearl, 61, and Doreen Pearl, both of Mt. Pleasant, South Carolina, and Shuang “Lucia” Liu, 32, of China.
They are charged with conspiracy to defraud the United States of America, entry of goods by means of false statement and smuggling goods into the United States.
James Pearl was president of Pro-Trac Tires LLC. Doreen Pearl was an employee of the company, located at 555 Frost Road in Streetsboro. The company was in the business of importing tires from China, India and other international suppliers. The company served as a middleman between the foreign supplier and domestic retailer, according to the indictment.
Liu worked for Qingdao Au-Shine Tyre Co. (Au Shine), a tire exporting company located in China. Liu was the point of contact for Au-Shine’s foreign accounts filled orders, coordinated exportation and received wire transfers of payments, according to the indictment.
The Commerce Department’s Anti-Dumping Order, amended in 2008, established import taxes on certain Chinese tires at a rate of up to 210 percent. But certain importers and manufacturers were given exemptions or lower tax rates.
From 2009 through 2013, the Pearls and Liu submitted fraudulent and altered invoices to Customs and Border Patrol to lower the taxable duty Pro-Trac was required to pay for importing tires from Au-Shine, according to the indictment.
Specifically, the Pearls and Liu presented fraudulent invoices and physically altered invoices to make it appear the tires were being shipped from companies that had exemptions, so Pro-Trac’s duty tax rate was lowered from 210 percent to 12.9 percent, according to the indictment.
By submitting approximately 176 false entry summaries, the U.S. was deprived of more than $9.7 million in revenue, according to the indictment.
The Pearls and Liu are scheduled to be arraigned in Ohio on July 12.
The matter is being prosecuted by Assistant U.S. Attorney Duncan T. Brown following an investigation by the Department of Homeland Security – Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Former Tribal Executive Sentenced to Federal Prison for EmbezzlementRead the Press Release
United States Attorney Randolph J. Seiler announced today that a former executive board member of the Sisseton-Wahpeton Sioux Tribe was sentenced in federal court to 20 months of imprisonment.
Thomas Adams, 46, and of the Old Agency District, was also ordered to pay restitution in the amount of $151,477, and to serve three years of supervised release after serving his prison sentence.
According to court documents, beginning on or about January 20, 2011, and continuing through March 9, 2013, in the District of South Dakota and elsewhere, Thomas Adams formed an agreement with others to embezzle, steal, and knowingly convert to their own use, funds from the Old Agency District of the Sisseton Wahpeton Oyate Sioux Tribe ("Tribe"), an Indian tribal organization. Adams joined the agreement knowing its illegal purpose. The Old Agency District ("District") is a subdivision of the Tribe.
Adams, among others, were elected executive board members of the District. During the relevant time period, the District's executive board members were entitled to receive a monthly stipend for their service. From approximately January 2011 through March 2013, Adams and others stole money from the District by writing checks to themselves for payroll, stipends, assistance, travel, and other miscellaneous reasons. As part of his plea agreement, Adams stated that his co-defendants stole a total of $415,499 from the District. The Defendant received $164,477 of the stolen funds and used the funds for his own purposes.
The investigation is being conducted by the Federal Bureau of Investigation and the United States Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Former New Hampshire Resident Sentenced for Failure to Register as A Sex OffenderRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that William Soltan, 34, of Suffolk County, New York, was sentenced to 12 months and one day in federal prison after pleading guilty to failing to register as a sex offender as required by the federal Sexual Offender Registration and Notification Act (SORNA).
According to documents that were filed and statements made in court, Soltan left New Hampshire sometime after July 2014 for a temporary visit to New York. At the time he left, Soltan was obligated to return to New Hampshire not later than December 30, 2014. Soltan did not return to New Hampshire, did not register in New Hampshire in 2015, and did not register in New York in 2015. Under SORNA, a person who is required to register must register in each jurisdiction where he resides, is employed or is going to school. SORNA gives an individual three days in which to register.
Soltan, who previously pleaded guilty, was also sentenced to serve five years of supervised release after he is released from prison.
The case was investigated by the United States Marshals Service with the assistance of the Manchester Police Department, the New Hampshire Department of Corrections, the New Hampshire State Police, and the Suffolk County, New York, Police Department. It was prosecuted by Assistant U.S. Attorney Donald Feith.
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Former Employee of Brentwood-Based Human Resources Company Pleads Guilty to Wire FraudRead the Press Release
Kristen Petersen Morrison, 44, pleaded guilty today to four counts of wire fraud, after being charged with defrauding customers of her former employer, Century II, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Morrison was indicted by a federal grand jury on November 30, 2016.
According to the charging document and plea agreement, Century II handles payroll and other human resource needs for small businesses in middle Tennessee. Morrison worked as a payroll specialist with Century II and set up payroll disbursements for Century II customers, including Absolute Wireless, a Nashville-based cell phone service retailer.
From March 2014 to May 2016, Morrison added several former and nonexistent employees to the Absolute Wireless payroll without the company’s knowledge or consent. She also arranged for payments to these fictitious employees to be made to check cards that Morrison set up and controlled. Morrison then used the check cards to pay for her personal expenses. During the two-year scheme, Morrison stole approximately $300,000 from Absolute Wireless.
Wire fraud carries a maximum penalty of up to 20 years in prison and a $250,000 fine. Morrison will be sentenced by United States District Judge Aleta Trauger on October 6, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Executive Director of Tribal Investment Firm Pleads Guilty to Fraud in Federal CourtRead the Press Release
United States Attorney Randolph J. Seiler announced today that a Fort Thompson, South Dakota, woman pleaded guilty to wire fraud and federal program fraud in federal court in Pierre, South Dakota.
Tally Colombe, 42, pleaded guilty before U.S. District Judge Roberto A. Lange.
Wire Fraud carries a maximum sentence of 20 years in prison, Program Fraud carries a maximum sentence of 10 years in prison. Each count of conviction also carries a possible maximum fine of $250,000, a period of supervised release of 3 years, an assessment of $100, and restitution.
According to plea documents filed with the Court, beginning on or about June 1, 2015, through and including October 1, 2016, in the District of South Dakota and elsewhere, Tally Colombe, having devised a scheme and artifice to defraud by means of false and fraudulent pretenses, representations and promises, caused to be transmitted by means of electronic wire communications in interstate commerce, writings, signs, signals, pictures and sounds for the purpose of executing such scheme and artifice to defraud.
It was part of the scheme and artifice to defraud that the defendant, while serving as the Executive Director of Hunkpati Investments, used a debit card belonging to Hunkpati Investments to make personal purchases from several businesses, all without knowledge and authorization from Hunkpati Investments.
Beginning on or about June 1, 2015, through and including October 1, 2016, Colombe, as an agent of Hunkpati Investments, which was an organization and agency that received in each of the calendar years of 2015 and 2016 benefits in excess of $10,000 under a federal program involving a grant, contract, subsidy, loan, guarantee, insurance, and other form of federal assistance, did knowingly and intentionally embezzle, steal, obtain by fraud, and otherwise without authority knowingly convert to the use of persons other than the rightful owner, and intentionally misapply property worth at least $5,000 which was owned by and was under the care, custody and control of Hunkpati Investments.
Hunkpati Investments (Hunkpati), located in Fort Thompson, South Dakota, is a Native Community Development Financial Institution established to provide financial opportunities to stimulate economic development on the Crow Creek Sioux Reservation. Hunkpati services include a savings incentive program and lending for credit builder and small business loans. Hunkpati is funded by grants from the U.S. Department of Treasury, the U.S. Department of Agriculture, the U.S. Department of Health and Human Services, the Northwest Area Foundation, and several other small foundations. In 2015, Hunkpati received in excess of $30,000 in grants from federal agencies.
Hunkpati is governed by a Board of Directors (Board). Defendant served as an agent, that is, Executive Director, of Hunkpati from May of 2015, to approximately November of 2016, and reported to the Board. Prior to becoming the Executive Director, Defendant also served on the Board as a Board Member. As Executive Director, Defendant was responsible for advising the Board on the financial status of Hunkpati as well as maintaining compliance for Hunkpati’s spending pursuant to the federal grant requirements.
The unlawful purchases, and therefore the wire transfers, were made without authorization from the Board. Defendant did not disclose the purchases to the Board. The amount of identified suspicious expenditures and embezzled funds totals at least $15,001. The amount of embezzled funds could be as high as approximately $90,912.04.
The investigation is being conducted by the Federal Bureau of Investigation and the United States Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the United States Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the United States Attorney’s Office at (605)330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Erie Man Pleads Guilty to Federal Gun ChargesRead the Press Release
ERIE, PA. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearm laws, Acting United States Attorney Soo C. Song announced today.
Ezra Eugene Davis, 32, pleaded guilty to three counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on October 21, 2016, Davis possessed seven firearms while released on bond awaiting trial on local gun and drug charges. Davis was also charged with the knowing possession of stolen firearms and with possession of firearms while a current user of controlled substances.
Judge Cercone scheduled sentencing for October 23, 2017 at 1:30 p.m. The law provides for a total sentence of 25 years in prison, a fine of $750.000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Millcreek Township Police Department conducted the investigation that led to the prosecution of Davis.
Erie Felon Unlawfully Possessed Seven FirearmsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
John Dominic Joseph Juliano pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Juliano unlawfully possessed a Smith & Wesson rifle, a Century Arms rifle, a Norinco rifle, a Glock pistol, a Springfield pistol, a DPMS rifle and a Maverick Arms shotgun, while being prohibited from firearm possession because he is a convicted felon.
Judge Cercone scheduled sentencing for October 23, 2017 at 12:45 p.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Juliano.
Eagle Butte Man Indicted on Several Assault ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Phillip Mound, age 25, was indicted on December 14, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 27, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 9 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 18, 2016, Mound unlawfully assaulted his dating partner causing her serious injuries.
The charges are merely accusations and Mound is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Mound was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District Man Sentenced to 8 1/2 Years in Prison for Sexually Abusing 15-Year-Old GirlRead the Press Release
WASHINGTON – Urlick Evans, 41, of Washington, D.C., was sentenced today to a prison term of 102 months for sexually abusing a 15-year-old girl, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Evans pled guilty in March 2017, in the U.S. District Court for the District of Columbia, to a charge of first-degree child sexual abuse. The plea, which was contingent upon the Court’s approval, called for an agreed-upon 102-month prison term. The Honorable Reggie B. Walton accepted the plea today and sentenced Evans accordingly. Following his prison term, Evans will be placed on 10 years of supervised release. He also will be required to register as a sex offender for a period of 10 years.
According to a statement of offense submitted during the plea proceedings, at the end of July 2015, the 15-year-old victim ran away from her residence in Baltimore. Once in Washington, D.C., she made contact with her estranged father, and stayed with him for approximately one week until she met Evans.
Evans, who was 39 at the time, asked the girl how old she was and she initially told him that she was 18. He invited her to his apartment in Southeast Washington. Once there, he sexually abused the girl. Shortly thereafter, he was contacted by members of the girl’s family and informed that she was only 15. Specifically, on Aug. 20, 2015, the girl’s parents contacted Evans to inquire about the whereabouts of their daughter. The father requested that Evans return the girl to him. Evans, however, told the parents that she no longer was living with him and that he did not know where they could find her.
After this conversation, the girl continued to live with Evans at his apartment in Washington, D.C. Also, according to the statement of offense, over the course of the next several weeks and up until Evans’s arrest on Sept. 22, 2015, he continued to sexually abuse the girl.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Chief Newsham commended the work of those who investigated the case from MPD’s Youth Division and the FBI’s Child Exploitation Task Force. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Criminal Investigator John Marsh and Assistant U.S. Attorneys Andrea L. Hertzfeld and Lindsay J. Suttenberg, who prosecuted the matter.
District Court Enters Permanent Injunction Against Alabama Pharmacy and Individuals to Prevent Distribution of Adulterated and Misbranded Drugs and Unapproved New DrugsRead the Press Release
The U.S. District Court for the Southern District of Alabama entered a consent decree of permanent injunction against defendants Medistat RX LLC (Medistat), Mark D. Acker who served as its Chief Executive Officer, Timothy L. Fickling, who served as its Production Manager, and V. Elaine Waller, who served as its Pharmacist-in-Charge and Quality Manager, the Justice Department announced today. The injunction permanently enjoins the defendants from distributing adulterated, misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The Department filed a complaint in the U.S. District Court for the Southern District of Alabama on May 23, at the request of the U.S. Food and Drug Administration (FDA), alleging that the defendants failed to adequately address insanitary conditions that resulted in contamination in sterile areas of the facility.
According to the complaint, Medistat manufactured, labeled and distributed both sterile and non-sterile drugs. Medistat’s sterile drugs included injectable vitamins and minerals, amino acids, hormones, steroids and vasodilators. The pharmacy distributed drugs to individual patients, surgery centers, and doctors’ offices throughout the United States.
In 2015, the Rhode Island Department of Health notified FDA of an outbreak of Staphylococcus aureus infections potentially linked to drugs manufactured by Medistat. FDA then conducted an inspection. FDA investigators found, from Medistat’s own documents, that the pharmacy itself identified several types of microorganisms in the air and on surfaces used for sterile processing. Yet, according to the complaint, upon identifying the microbial contamination, the defendants failed to adequately investigate or take sufficient corrective action to alleviate the insanitary conditions that resulted in the contamination in the sterile areas of the facility.
“Doctors and patients must be able to rely on the quality of drug products that are purported to be sterile,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When insanitary conditions are identified in areas where sterile drugs are made, such conditions need to be corrected. The Department of Justice will continue to work actively with FDA to ensure that compounding pharmacies comply with the law and provide safe products to patients.”
According to the complaint, FDA investigators observed a number of insanitary conditions at Medistat, including the continuation of aseptic drug production when significant microbial contamination was present in the aseptic processing areas, and the failure to use sterile wipes to clean critical surfaces in the pharmacy. As noted in the complaint, FDA observed that defendants failed to establish an adequate system for maintaining equipment used to control the aseptic conditions and failed to ensure and validate that drug product containers and closures were adequately sterilized.
The complaint alleged that a 2014 FDA inspection of Medistat also revealed insanitary conditions. For example, FDA observed the pharmacy’s failure to adequately investigate the results of environmental monitoring, which recovered numerous microorganisms, including Penicillium aurantacium and Bacillus cereus, within the aseptic processing area.
“We commend the outstanding work of the FDA and the Justice Department’s Consumer Protection Branch in bringing to light these harmful conditions at Medistat,” said Acting U.S. Attorney Steve Butler for the Southern District of Alabama. “It was shocking to learn that pharmacists in our own district would produce medicines in a contaminated environment, jeopardizing the health and safety of our citizens.”
The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the resolution, the defendants represented that Medistat ceased operations on Sept. 1, 2015. If Medistat seeks to resume manufacturing, holding or distributing drugs, the company must comply with specific remedial measures set forth in the order entered by the Court. In addition, if the individual defendants hold a legal interest or a supervisory or management responsibility at a facility that seeks to manufacture, hold or distribute drugs, they must comply with remedial provisions in the order entered by the district court.
This matter was handled by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Jennifer Argabright of FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Alabama, visit its website at https://www.justice.gov/usao-sdal.
District Court Enters Permanent Injunction Against Alabama Pharmacy and Individuals to Prevent Distribution of Adulterated and Misbranded Drugs and Unapproved New DrugsRead the Press Release
The U.S. District Court for the Southern District of Alabama entered a consent decree of permanent injunction against defendants Medistat RX LLC (Medistat), Mark D. Acker who served as its Chief Executive Officer, Timothy L. Fickling, who served as its Production Manager, and V. Elaine Waller, who served as its Pharmacist-in-Charge and Quality Manager, the Justice Department announced today. The injunction permanently enjoins the defendants from distributing adulterated, misbranded and unapproved new drugs in violation of the federal Food, Drug, and Cosmetic Act.
The Department filed a complaint in the U.S. District Court for the Southern District of Alabama on May 23, at the request of the U.S. Food and Drug Administration (FDA), alleging that the defendants failed to adequately address insanitary conditions that resulted in contamination in sterile areas of the facility.
According to the complaint, Medistat manufactured, labeled and distributed both sterile and non-sterile drugs. Medistat’s sterile drugs included injectable vitamins and minerals, amino acids, hormones, steroids and vasodilators. The pharmacy distributed drugs to individual patients, surgery centers, and doctors’ offices throughout the United States.
In 2015, the Rhode Island Department of Health notified FDA of an outbreak of Staphylococcus aureus infections potentially linked to drugs manufactured by Medistat. FDA then conducted an inspection. FDA investigators found, from Medistat’s own documents, that the pharmacy itself identified several types of microorganisms in the air and on surfaces used for sterile processing. Yet, according to the complaint, upon identifying the microbial contamination, the defendants failed to adequately investigate or take sufficient corrective action to alleviate the insanitary conditions that resulted in the contamination in the sterile areas of the facility.
“Doctors and patients must be able to rely on the quality of drug products that are purported to be sterile,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “When insanitary conditions are identified in areas where sterile drugs are made, such conditions need to be corrected. The Department of Justice will continue to work actively with FDA to ensure that compounding pharmacies comply with the law and provide safe products to patients.”
According to the complaint, FDA investigators observed a number of insanitary conditions at Medistat, including the continuation of aseptic drug production when significant microbial contamination was present in the aseptic processing areas, and the failure to use sterile wipes to clean critical surfaces in the pharmacy. As noted in the complaint, FDA observed that defendants failed to establish an adequate system for maintaining equipment used to control the aseptic conditions and failed to ensure and validate that drug product containers and closures were adequately sterilized.
The complaint alleged that a 2014 FDA inspection of Medistat also revealed insanitary conditions. For example, FDA observed the pharmacy’s failure to adequately investigate the results of environmental monitoring, which recovered numerous microorganisms, including Penicillium aurantacium and Bacillus cereus, within the aseptic processing area.
“We commend the outstanding work of the FDA and the Justice Department’s Consumer Protection Branch in bringing to light these harmful conditions at Medistat,” said Acting U.S. Attorney Steve Butler for the Southern District of Alabama. “It was shocking to learn that pharmacists in our own district would produce medicines in a contaminated environment, jeopardizing the health and safety of our citizens.”
The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction. As part of the resolution, the defendants represented that Medistat ceased operations on Sept. 1, 2015. If Medistat seeks to resume manufacturing, holding or distributing drugs, the company must comply with specific remedial measures set forth in the order entered by the Court. In addition, if the individual defendants hold a legal interest or a supervisory or management responsibility at a facility that seeks to manufacture, hold or distribute drugs, they must comply with remedial provisions in the order entered by the district court.
This matter was handled by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Jennifer Argabright of FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Alabama, visit its website at https://www.justice.gov/usao-sdal.
Conneaut Lake Man Pleads Guilty to Possessing and Sharing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Conneaut Lake, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
John P. Hoffman, 54, of Conneaut Lake, Pennsylvania, pleaded guilty to two counts before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Hoffman possessed and distributed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Cercone scheduled sentencing for October 23, 2017 at 3:00 p.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Hoffman on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation that led to the prosecution of Hoffman.
Columbia Man Indicted for Enticing a Minor for SexRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was indicted by a federal grand jury today for attempting to entice an undercover officer, whom he believed was a 14-year-old girl, to meet for illicit sex.
Darren Wade Lasley, 28, of Columbia, was charged in an indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Lasley on June 22, 2017.
The federal indictment alleges that Lasley attempted to entice a minor to engage in illicit sexual activity between June 14 and June 21, 2017.
According to an affidavit that was filed in support of the original criminal complaint, a detective with the Boone County Sheriff’s Department posted an undercover online advertisement in an attempt to seek out potential sexual predators. On June 14, 2017, the decoy began receiving e-mails from Lasley. The decoy told Lasley she was 14 years old and they exchanged photographs.
In e-mail exchanges over the course of the next several days, the affidavit says, Lasley described his plans for a sexual encounter with the decoy. Lasley allegedly proposed visiting the decoy’s residence while her mother was at work or out of town. On June 21, 2017, Lasley asked the decoy if she could sneak out of her house to meet him for a sexual rendezvous. When Lasley arrived at the arranged meeting location, he was arrested.
Larson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt.
Buffalo Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Gabriel Rodriguez, 39, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, 100 kilograms or more of marijuana before Senior U.S. District Judge William M. Skretny. The charges carry a mandatory minimum sentence of 5 years in prison, a maximum sentence of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that between 2004 and July 12, 2012, the defendant conspired with others to distribute large quantities of marijuana in the Buffalo area. In April 2009, codefendants Jordan Ali and Shane Grafman began assisting one another in their drug distribution businesses. The defendants obtained the narcotics in the State of Arizona, and then utilized several methods to send the marijuana and cocaine to the Buffalo area, including cars, trucks, shipping crates and United States Postal Service parcels. Grafman also utilized private jets to travel from Arizona to Buffalo to pick up his drug proceeds. During this time, Rodriguez obtained more than 2,000 from Grafman and Ali for distribution in the Buffalo area.
During the investigation, law enforcement officers seized approximately $1,000,000 in United States currency, including $671,385 from a hidden compartment within a Honda Ridgeline driven by Grafman.
A total of six defendants were arrested and convicted in this case.
The plea is the culmination of investigation by the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent-in-Charge, New York Field Division; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge James C. Spero; Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam Cohen; Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Erie County Sheriff's Department, under the direction of Sheriff Tim Howard; Niagara Frontier Transit Authority, under the direction of Chief George Gast; Tempe, Arizona Police Department; Apache County, Arizona Sheriff's Department; and the Oklahoma State Police.
Sentencing is scheduled for October 18, 2017, at 10:00 a.m. before Judge Skretny.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Robert Hall, 41, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on May 13, 2016, law enforcement officers seized three packages containing cocaine that were shipped from Texas to Buffalo to various recipients. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set-up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo. The three packages contained a total of five kilograms of cocaine. Hall paid the recipients of the packages in money or crack cocaine so they would receive the packages for Hall and co-defendant Clarence Adams. The charges against Adams remain pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for October 13, 2017, at 1:00 p.m. before Judge Arcara.
Brookfield Man Pleads Guilty to Manufacturing Child PornographyRead the Press Release
CONCORD, N.H. – Andrew McKenzie, 28, of Brookfield, New Hampshire, pleaded guilty today to one count of manufacturing child pornography, announced Acting United States Attorney John J. Farley.
According to documents on file and statements made during the change of plea hearing, in October 2016 the defendant began an instant messenger conversation through Kik with an undercover agent of the Federal Bureau of Investigation. The defendant agreed to send the undercover agent sexually explicit photographs of a minor child. The investigation determined that the images sent by the defendant were of a minor child known to the defendant.
The defendant has agreed to serve a sentence of 262 months in federal prison under the terms of a plea agreement with the United States to be followed by five years of supervised release. If the Court decides to reject the agreement, the defendant will have the right to withdraw his guilty plea. The sentencing hearing is scheduled for October 19, 2017.
The case was investigated by the Federal Bureau of Investigation and the Rochester Police Department. The case was prosecuted by Assistant United States Attorneys Helen White Fitzgibbon and Donald Feith.
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Boardman man sentenced to nearly five years in prison for defrauding investors out of nearly $1.2 millionRead the Press Release
A Boardman man was sentenced to nearly five years in prison for defrauding investors out of nearly $1.2 million and related tax violations, said Acting U.S. Attorney David A. Sierleja, Stephen D. Anthony, Special Agent in Charge of the FBI and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office
George N. Krinos was sentenced to 57 months in prison. U.S. District Judge Dan Aaron Polster ordered Krinos to pay $1.1. million in restitution to the victims and $177,000 in restitution to the IRS.
Krinos previously pleaded guilty to a one count each of engaging in a securities fraud scheme and willfully failing to collect and pay taxes for his employees.
Krinos, through his various companies known as Krinos Holdings, engaged in a securities fraud scheme in which he sold through false and deceptive practices securities to numerous victims in Ohio. These securities consisted of debenture notes and private placement memoranda that were not properly registered with the Securities and Exchange Commission. Because the securities were not registered with and therefore subject to greater scrutiny by the SEC, Krinos was limited to selling them to “accredited investors” who were generally individuals having a net worth in excess of $1 million or who met specific, high-dollar income thresholds, according to court documents.
From 2011 through 2014, Krinos sold these unregistered securities to at least 10 investors in Ohio, causing them financial losses. Krinos sold the securities under the pretense that his investors’ funds would be used for legitimate business purposes, including to provide venture capital to various client companies seeking funding from Krinos Holdings. Rather than use these funds for their intended uses, Krinos instead used the money for personal expenses and to engage in unauthorized foreign currency transactions. To entice his victims, Krinos made promises that their initial investments of $.10 per share would rise in value to as much as $5 or $6 per share. Krinos also falsely told investors and others that he managed approximately $600 million in an investment account when he in fact had only $5 in the account, according to court documents.
Krinos submitted falsified letters and statements to reflect high balances in his accounts. Krinos also falsely told investors that they were making high returns on their investments and that his relationships with the client companies was on good terms. Contrary to his representations to his investors, Krinos actually used their funds on for his own personal use at restaurants, bars, casinos, adult entertainment clubs and hotels. Rather than disclose these personal expenses, Krinos later characterized them as “sales and marketing” costs in a budget given to his shareholders at a meeting in Boardman, in 2013, according to court documents.
Krinos also improperly withheld taxes, including federal income taxes and Federal Insurance Contribution Act taxes from his employees without paying over those taxes to the IRS. Over the course of approximately two years, Krinos improperly withheld and kept approximately $91,495 of his employees’ tax contributions from the IRS, according to court documents.
“This defendant lied to investors as means to funding a lavish lifestyle for himself,” Sierleja said.
“George Krinos left several investors in financial peril and created a recipe for devastation that could last a lifetime,” Korner said. "Additionally, employment tax fraud results in the loss of tax revenue to the United States government and the loss of future Social Security or Medicare benefits for the employees."
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Robert J. Patton, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
Attorney General Jeff Sessions Issues Statement on the Murder of NYPD Officer Miosotis FamiliaRead the Press Release
Attorney General Jeff Sessions today issued the following statement on the murder of NYPD Officer Miosotis Familia:
“Officer Miosotis Familia proudly wore the badge for 12 years, serving her community and keeping the people of New York City safe,” Attorney General Sessions said. “She was doing her duty, on patrol in the Bronx, when she was unjustly targeted and murdered in a cowardly, unprovoked attack. She will be remembered for her years of service and for the example of selflessness that she set protecting innocent people on our streets. This murder in cold blood is a tragedy, and sadly it is the latest in a troubling series of attacks on police officers over the past two years. These attacks must stop and we must honor the service of every law enforcement officer and the memory of those we have lost in the line of duty.”
Albuquerque Felon Sentenced to Federal Prison for Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jesse Chavez, 34, of Albuquerque, N.M., was sentenced today in federal court to 46 months in prison followed by three years of supervised release for violating the federal firearms laws by unlawfully possessing a firearm and ammunition.
Chavez was charged by criminal complaint on May 27, 2016, with being a felon in possession of a firearm and ammunition on May 4, 2016, in Bernalillo County, N.M. According to the criminal complaint, officers of the Bernalillo County Sheriff’s Office executed an arrest warrant on Chavez on May 4, 2016. During a search incident to arrest, the officers seized a loaded firearm from Chavez.
Chavez subsequently was indicted on June 14, 2016, and charged with being a felon in possession of a firearm and ammunition. At the time, Chavez was prohibited from possessing firearms or ammunition because he previously had been convicted of first-degree murder in 2000. On Jan. 13, 2017, Chavez pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney George C. Kraehe prosecuted the case.
55-Year Sentence Imposed on Columbus Man Convicted of Sex Crimes Against ChildRead the Press Release
COLUMBUS, Ohio – Thomas A. Sweeney, 49, of Columbus was sentenced to serve 45 years in prison for committing sex crimes involving a 14-year old female.
Vipal Patel, First Assistant United States Attorney for the Southern District of Ohio, Steve Francis, Acting Special Agent in Charge, U.S. Department of Homeland Security Investigations (HSI), Franklin County Sheriff Dallas Baldwin and other members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down today by U.S. District Judge Michael H. Watson.
After a three-day trial, A U.S. District Court jury convicted Sweeney on January 20, 2017 of sexual exploitation of a minor, attempted coercion and enticement of a minor, receipt of child pornography and committing a sexual offense against as minor as a registered sex offender. Judge Watson sentenced Sweeney to a 45-year prison term on each of the first three crimes and ordered him to serve them concurrently, plus an additional ten years for committing a sexual offense against a minor as a registered sex offender.
According to court documents and trial testimony, Sweeney communicated with his then-14-year-old biological daughter via cellular phone and convinced her to send him photographs of her nude genitalia via text message. He also attempted to convince her to meet with him for purposes of the two engaging in sexual acts.
Sweeney had been convicted in 2004 in Franklin County Common Pleas Court for two counts of rape involving a minor. He was sentenced to two consecutive terms of five years in prison for that conviction.
Sweeney was charged by a criminal complaint in this case on February 11, 2016 and was indicted by a federal grand jury on March 31, 2016 and in a superseding indictment on January 12, 2017.
This case was prosecuted by United States Attorney Benjamin C. Glassman and Assistant United States Attorney Heather A. Hill. It was investigated by Franklin County ICAC Task Force members.
“Sweeney has proven himself to be a true predator,” Patel said. “The most significant outcome of the case is that the public is protected from future crimes by him.”
“The sentence handed down today should send a clear message about the harsh consequences that await child predators," said Steve Francis, special agent in charge of HSI, "This case is yet another example of the extraordinary collaborative efforts among our law enforcement partners with the ICAC, and our resolve to protect the most vulnerable among us."
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. In addition to HSI and the Franklin County Sheriff’s Office, the following agencies are members of the task force: Ohio ICAC, the Ohio Bureau of Criminal Investigation in Attorney General Mike DeWine’s Office, Franklin County Prosecutor Ron O’Brien’s Office, the Delaware and Pickaway county Sheriff’s offices and the police departments in Circleville, Columbus, Grandview, Grove City, Hilliard, The Ohio State University, Upper Arlington and Westerville.
3 July 2017
Two Men Convicted of Burglarizing Firearms DealersRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two local men today of conspiracy and theft of firearms from a federally licensed firearms dealer.
According to court records and evidence presented at trial, Preston G. Holmes III, 23, and Matthew D. Jones, 23, participated in the burglary of a Federal Firearms Licensee (FFL) in Chantilly, where they stole 35 handguns. Holmes and Jones were also involved in attempted thefts of firearms from FFLs in Spotsylvania County and Fredericksburg.
Holmes and Jones each face up to 10 years in prison when sentenced on Sept. 12, 2017. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Colonel Edwin C. Roessler Jr., Chief of Fairfax County Police; Roger L. Harris, Spotsylvania County Sheriff; and David W. Nye, Chief of Fredericksburg Police, made the announcement after U.S. District Judge Gerald Bruce Lee accepted the verdict. Assistant U.S. Attorneys Michael Rich and Alexander Blanchard are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-67.
Two District Men Sentenced to 47-Year Prison Terms for Deadly 2009 Gun Battle in Northeast WashingtonRead the Press Release
WASHINGTON – Two men, both from Washington, D.C., have been sentenced to 47-year prison terms for their roles in a gun battle in Northeast Washington in which two people were killed, including a 15-year-old innocent bystander, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Sequarn Tibbs, 25, and Earl Jackson, 24, were found guilty by a jury in November 2016 of two counts of second-degree murder while armed, three counts of assault with intent to kill, two counts of aggravated assault, and related weapons offenses. The verdicts followed a trial in the Superior Court of the District of Columbia. They were sentenced on June 30, 2017, by the Honorable Michael Ryan.
Tibbs and Jackson had pled guilty in 2013 to voluntary manslaughter and other charges, but the pleas were subsequently reversed by the District of Columbia Court of Appeals. That led to the trial and the jury’s verdict. Additionally, a third co-defendant, Antonio Barnes, 25, pled guilty in September 2016 to voluntary manslaughter and other charges. He was sentenced in November 2016 to a 13-year prison term, to be followed by five years of supervised release.
According to the government’s evidence, Tibbs and Jackson were part of a group, known as “Young Savage,” associated with the 37th Street/37th Place neighborhood of Southeast Washington. The violence came after the discovery on Oct. 12, 2009 that a burglary took place in the home of Jackson’s mother, located in the Clay Terrace area of Northeast Washington. A .38-caliber revolver, belonging to a juvenile co-conspirator, was stolen during the burglary.
Late Oct. 12, 2009 and early Oct. 13, 2009, Jackson and others, including Tibbs’s brother, Daquan Tibbs, 18, decided that Clay Terrace residents were responsible for the burglary. The group decided to travel to the home of Jackson’s mother in Clay Terrace to identify and find the people responsible and get the property back - with force, if necessary.
They rode to Clay Terrace in a taxicab, while armed with a .45-caliber semi-automatic pistol, a .40-caliber pistol and a .9-mm pistol. Once there, they decided to confront Clay Terrace individuals who were outside in the neighborhood. They demanded the .38-caliber revolver, and, although it remains unclear if money was taken in the burglary as well, also asked for cash.
A male from the Clay Terrace group advised that they did not know who was responsible for the theft, but opined that it was probably a “young’un.” Later, an older Clay Terrace resident came to the Jacksons’ house, and asked about the situation. This person also speculated it was probably “one of the little young’uns,” and left. The older man later came back and returned the gun, not saying where he got it. He said that he did not know anything about the missing money.
Sequarn Tibbs, meanwhile, joined the group in Clay Terrace. Throughout the day, several members of the group smoked marijuana. At one point, Jackson and the juvenile co-conspirator discussed whether they should wait until school was over to see if they could find the “young’uns” responsible for the theft/burglary.
Shortly before 4 p.m. on Oct. 13, 2009, the defendants and others in the group left the house. The group took their guns with them, which included a .45-caliber pistol, a .40-caliber pistol, a .38-caliber revolver, and a .9-mm pistol. They headed to a courtyard known in Clay Terrace as “Briscoe Court,” in the 300 block of 53rd Street NE. A gun battle soon began, with Sequarn Tibbs firing the first shot. During the gunfire, Daquan Tibbs was shot to death by a weapon fired by the juvenile co-conspirator. A 15-year-old boy, Davonta Artis – an innocent bystander – was shot and also killed. Three others were wounded.
In August of 2010, Tibbs and Jackson learned that warrants had been issued for their arrests, and they fled the Washington, D.C. area to avoid being apprehended. Tibbs was captured on Sept. 21, 2010 in New York, and Jackson was captured on Jan. 13, 2012, in North Carolina.
In announcing the sentences, U.S. Attorney Phillips and Chief Newsham commended the work of the detectives, officers and mobile crime scene technicians who investigated the case for the Metropolitan Police Department and the U.S. Park Police. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Deborah Sines; former Assistant U.S. Attorneys Reagan Taylor, Sean Tonolli, J.P. Cooney, Sharad Khandelwal and Heather Carlton; Liaison and Operations Manager Linda McDonald; Paralegal Specialists Zekiah Wright, Debra Joyner, Kendra Johnson, Alesha Matthews-Yette, Kwasi Fields, Kelly Blakeney, Sharon Newman, Fern Rhedrick, and Marian Russell; Litigation Technology Specialists Leif Hickling, William Henderson, and Joshua Ellen; Victim/Witness Advocates Marcia Rinker and Katina Adams-Washington, former Investigative Analyst Larry Grasso, and Investigative Analysts Zachary McMenamin, Durand Odom, and John Marsh. Finally, they praised the work of Assistant U.S. Attorneys Laura Bach and Nebiyu Feleke and Special Assistant U.S. Attorney Veronica Noonan, of the District of Columbia Office of the Attorney General, who prosecuted the case.
Tax Return Preparer Pleads GuiltyRead the Press Release
DALLAS — Arslen Ramin Ayeze, a tax return preparer who managed a tax preparation business in Dallas, Texas, appeared last week in federal court in Dallas, before U.S. Magistrate Judge Renee Toliver, and pleaded guilty to one count of aiding and assisting in the preparation of a tax return, announced U.S. Attorney John Parker of the Northern District of Texas.
Ayeze, who was remanded to custody following his guilty plea for a violation of his conditions of pretrial release, faces a maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. Sentencing is set for October 11, 2017, before U.S. District Judge Ed Kinkeade.
According to the factual resume filed in the case, from 2008 through 2010, Ayeze was a tax preparer doing business under the name of Universal Tax in Dallas, Texas. On January 20, 2010, Ayeze prepared and electronically filed with the IRS, a 2009 U.S. Individual Income Tax Return, Form 1040, on behalf of K.G. which was false and fraudulent. In preparing the tax return, Ayeze deceived the I.R.S. by falsely including a business loss deduction in the amount of $10,575 for a purported sole proprietorship operated by K.G. Ayeze knew K.G. had not incurred the loss and was not entitled to claim the deduction on the tax return. The false deduction of $10,575 resulted in an actual tax loss to the United States in the approximate amount of $2,557.
The investigation was conducted by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
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Prospect Mortgage, LLC agrees to pay $4.157 Million to resolve False Claims Act allegations arising from the FHA Mortgage Lending Practices of two of its branchesRead the Press Release
ATLANTA – John A. Horn, U.S. Attorney for the Northern District of Georgia, and Brian J. Stretch, U.S. Attorney for the Northern District of California, announced that the United States has settled civil mortgage fraud claims against Prospect Mortgage Company, LLC (“Prospect”) stemming from Prospect’s participation in the Direct Endorsement Lender Program, which is administered by the Federal Housing Administration (“FHA”) and the U.S. Department of Housing and Urban Development (“HUD”).
“To participate in the FHA program, Prospect had to comply with HUD underwriting and quality control requirements and certify that these requirements had been satisfied with respect to each FHA loan it originated,” said John A. Horn, U.S. Attorney for the Northern District of Georgia. “Prospect failed to adhere to these requirements at two Southeastern branches and when many of these loans later defaulted, the United States suffered substantial losses.”
“Prospect’s knowing failure to comply with material HUD loan origination requirements not only resulted in major losses to the public fisc, but also served to undermine the FHA program,” said Brian Stretch, U.S. Attorney for the Northern District of California. “Today’s settlement demonstrates the Department of Justice’s resolve and commitment to hold lenders, large and small, accountable for this type of fraudulent conduct.”
“Ensuring the fiscal integrity of FHA programs is at the core of our mission,” said Acting HUD Inspector General Helen M. Albert. “We will continue to work with our law enforcement partners to identify and root out those that seek to compromise such programs that are directly intended to assist the American public,” he concluded.
In this settlement, Prospect has agreed to pay the United States $4.157 million to resolve an investigation conducted by the U.S. Attorneys’ Offices for the Northern Districts of Georgia and California into whether Prospect violated the False Claims Act by falsely certifying compliance with critical underwriting and quality control (“QC”) requirements when originating loans insured by the FHA and HUD. As revealed by an Atlanta HUD-Office of Inspector General (“OIG”) audit, two Prospect branches – one in Florida and another in North Carolina – originated many of these loans without adhering to the requisite HUD requirements. As a result, the United States suffered substantial losses when the loans defaulted and ripened into claims by Prospect for insurance payments from the United States.
Prospect participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”). As a DE Lender, Prospect had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DE Lender approves a mortgage loan for FHA insurance, and the loan later defaults, the holder of the loan may submit an insurance claim to the Government to recover its losses on the loan. Under the DE Program, the Government does not review a loan before endorsement for FHA insurance. Instead, FHA and HUD rely upon DE Lenders like Prospect to follow program rules, which require, among other things, that a lender: (1) adhere to HUD underwriting guidelines; (2) maintain a QC program that can identify and correct deficiencies in their underwriting practices; and (3) self-report to HUD materially deficient loans identified by their QC program.
Between December 2007 and December 2009, Prospect had a 12.29 percent default rate – well in excess of the national average – within HUD’s Atlanta Home Ownership Center (“HOC”). HUD determined that approximately 76% of these defaults were attributable to two particular Prospect branches located in Florida and North Carolina. The Government’s investigation revealed that the majority of the audited loans from these branches were not compliant with HUD underwriting requirements relating to Prospect’s assessment of borrower: (1) assets; (2) income; and (3) credit, which are essential considerations in determining whether a loan will be repaid, as opposed to going into default or serious delinquency.
As part of the settlement, Prospect has acknowledged among other things, the following conduct that occurred in the two Prospect branches at issue:
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Prospect endorsed for FHA insurance loans that had not been originated in accordance with HUD requirements concerning a DE Lender’s assessment of assets, income, and credit.
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Prospect falsely certified that the non-compliant loans that it originated had been underwritten in accordance with HUD underwriting requirements.
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As evidenced by its 12.29% default rate within the Atlanta HOC, and the fact that 76% percent of such defaults were attributable to one branch office in Florida and another in North Carolina, Prospect failed to adhere to HUD quality control guidelines.
The investigation of this case was a coordinated effort between the U.S. Attorneys’ Offices for the Northern Districts of Georgia and California, HUD, and HUD-OIG.
This resolution with Prospect is the latest in a string of civil fraud cases pursued by the United States in recent years alleging fraudulent lending practices by residential mortgage lenders.
Assistant U.S. Attorney Paris A. Wynn handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
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Prospect Mortgage, LLC Agrees to Pay $4.157 Million to Resolve False Claims Act Allegations Arising from the FHA Mortgage Lending Practices of Two of Its BranchesRead the Press Release
SAN FRANCISCO – Prospect Mortgage Company, LLC (“Prospect”) has agreed to pay the United States $4.157 million to resolve allegations that that the company committed civil mortgage fraud in connection with its participation in the Direct Endorsement Lender Program announced U.S. Attorney for the Northern District of California Brian J. Stretch, and U.S. Attorney for the Northern District of Georgia John A. Horn.
The Direct Endorsement Lender Program, is administered by the Federal Housing Administration (“FHA”) and the U.S. Department of Housing and Urban Development (“HUD”). Prospect participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”). As a DE Lender, Prospect had the authority to originate, underwrite, and endorse mortgages for FHA insurance. In this settlement, Prospect has agreed to pay the United States $4.157 million to resolve an investigation conducted by the U.S. Attorneys’ Offices (USAO) for the Northern District of California and the Northern District of Georgia into whether Prospect violated the False Claims Act by falsely certifying compliance with critical underwriting and quality control (“QC”) requirements when originating loans insured by the FHA and HUD.
“Prospect’s knowing failure to comply with material HUD loan origination requirements not only resulted in major losses to the public fisc, but also served to undermine the FHA program,” said U.S. Attorney Stretch. “Today’s settlement demonstrates the Department of Justice’s resolve and commitment to hold lenders, large and small, accountable for this type of fraudulent conduct.”
“To participate in the FHA program, Prospect had to comply with HUD underwriting and quality control requirements and certify that these requirements had been satisfied with respect to each FHA loan it originated,” said U.S. Attorney Horn. “Prospect failed to adhere to these requirements at two Southeastern branches and when many of these loans later defaulted, the United States suffered substantial losses.”
“Ensuring the fiscal integrity of FHA programs is at the core of our mission,” said Acting HUD Inspector General Helen M. Albert. “We will continue to work with our law enforcement partners to identify and root out those that seek to compromise such programs that are directly intended to assist the American public,” he concluded.
Under the DE Program, if a DE Lender approves a mortgage loan for FHA insurance, and the loan later defaults, the holder of the loan may submit an insurance claim to the Government to recover its losses on the loan. The Government does not review a loan before endorsement for FHA insurance; instead, FHA and HUD rely upon DE Lenders like Prospect to follow program rules. The rules require, among other things, that a lender: (1) adhere to HUD underwriting guidelines; (2) maintain a QC program that can identify and correct deficiencies in their underwriting practices; and (3) self-report to HUD materially deficient loans identified by their QC program. As revealed by an Atlanta HUD-Office of Inspector General (“OIG”) audit, two Prospect branches – one in Florida and another in North Carolina – originated many of these loans without adhering to the requisite HUD requirements. As a result, the United States suffered substantial losses when the loans defaulted and ripened into claims by Prospect for insurance payments from the United States.
Between December 2007 and December 2009, Prospect had a 12.29 percent default rate – well in excess of the national average – within HUD’s Atlanta Home Ownership Center (“HOC”). HUD determined that approximately 76% of these defaults were attributable to two particular Prospect branches located in Florida and North Carolina. The Government’s investigation revealed that the majority of the audited loans from these branches were not compliant with HUD underwriting requirements relating to Prospect’s assessment of borrower: (1) assets; (2) income; and (3) credit, which are essential considerations in determining whether a loan will be repaid, as opposed to going into default or serious delinquency.
As part of the settlement, Prospect has acknowledged, among other things, the following conduct that occurred in the two Prospect branches at issue:
- Prospect endorsed for FHA insurance loans that had not been originated in accordance with HUD requirements concerning a DE Lender’s assessment of assets, income, and credit.
- Prospect falsely certified that the non-compliant loans that it originated had been underwritten in accordance with HUD underwriting requirements.
- As evidenced by its 12.29% default rate within the Atlanta HOC, and the fact that 76% percent of such defaults were attributable to one branch office in Florida and another in North Carolina, Prospect failed to adhere to HUD quality control guidelines.
The investigation of this case was a coordinated effort between the USAO for the Northern District of California, the USAO for the Northern District of Georgia, and HUD, including HUD’s Office of Inspector General.
This resolution with Prospect is the latest in a string of civil fraud cases pursued by the United States in recent years alleging fraudulent lending practices by residential mortgage lenders.
Assistant U.S. Attorney Douglas K. Chang handled this matter for the U.S. Attorney’s Office for the Northern District of California, with the assistance of Tina Louie.
Ponca City Woman Charged with Using Interstate Facilities to Solicit Murder with RicinRead the Press Release
Oklahoma City, Oklahoma – DANIELLE DANA LAYMAN, 37, of Ponca City, Oklahoma, has been charged by criminal complaint with soliciting someone to murder her former husband with ricin, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to the complaint and supporting affidavit, filed July 1, 2017, Layman used craigslist to locate someone interested in a "10 day gig overseas." On May 9, 2017, she met in Ponca City with a person who responded to the craigslist post. According to the affidavit, Layman gave that person written instructions on traveling to Tel Aviv, Israel, and using ricin to poison a specific taxi driver in exchange for $4,000 plus expenses. The affidavit states that Layman also gave the person a baggie that she claimed contained the ricin to be used in the murder. Ricin is an extremely hazardous substance derived from castor beans. According to the complaint, the taxi driver in Tel Aviv appears to be Layman’s former husband.
On June 30, 2017, the FBI executed a search warrant at Layman’s residence in Ponca City. The affidavit states that agents found castor beans in the kitchen, along with a mortar and pestle with residue that could be remnants of ground castor beans. According to the affidavit, agents also found instructions on how to make ricin. Layman was arrested late the same day. She appeared before U.S. Magistrate Judge Charles Goodwin this afternoon and will remain in federal custody pending further proceedings.
If convicted of using a facility of interstate commerce to solicit murder, Layman could be sentenced to ten years in prison, three years of supervised release, and a fine of $250,000.
Reference is made to the complaint affidavit and court record for further information. The public is reminded that Layman is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys David P. Petermann and Ashley Altshuler.
Ohio man indicted for trafficking crack cocaine and illegally having ammunitionRead the Press Release
An Ohio man was indicted trafficking crack cocaine and being a felon in possession of ammunition, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Shamar M. Stevenson was arrested on May 5 and found to have crack cocaine and seven rounds of 9 mm ammunition. He was prohibited from having the ammunition because of prior convictions in Stark County for felonious assault with a firearm and participating in a criminal gang.
The matter is being prosecuted by Assistant United States Attorney Aaron P. Howell following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Canton Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the United States of America’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
Mississippi Corrections Officers Sentenced for Inmate Assault and Cover-UpRead the Press Release
Mississippi correctional officer Robert Sturdivant, 48, was sentenced to 18 months in prison and one (1) year of supervised release for leading the cover-up after an inmate was severely beaten at the state’s Parchman Prison, the Justice Department announced today.
Three other officers have already been sentenced for the March 9, 2014, incident, in which an officer punched and kicked the victim while he lay nonresistant on the ground. The victim was temporarily blinded by the attack and suffered severe blood loss, a broken orbital bone, and permanent partial vision loss.
After the attack, Sturdivant, a supervisor, led the three other officers to create a cover story that falsely minimized and falsely justified the force used by officers. He pleaded guilty in February.
“Supervisory officers must be held accountable for permitting and encouraging the officers under their watch from committing violent acts,” said Acting Assistant Attorney General Tom Wheeler. “The Department of Justice is committed to enforcing the rights guaranteed by the United States Constitution.”
Three other officers were sentenced on June 2 for their roles in the beating and the cover-up. Lawardrick Marsher, 29, the main perpetrator of the assault, was sentenced to 50 weekends in jail and a period of probation. Deonte Pate, 24, was sentenced to 12 weekends in jail and to a period of probation for his role in concealing the incident. Romander Nelson, 44, was sentenced to 14 weekends in jail and a period of probation for failing to intervene to protect the victim.
The Mississippi State Penitentiary in Parchman is the largest prison in the state, housing more than 3,000 inmates. It has operated continuously as both a prison and a working farm since 1901.
“We have been consistent in our message,” said Christopher Freeze, special agent in charge of the FBI in Mississippi. “Corrections officers are not above the law. In fact, law enforcement officers should be held to a higher standard. This corrections supervisor heinously abused his power, infringing upon the Constitutional rights of the inmate, when he assisted with covering up the crime. It was our duty to bring him to justice. The FBI is committed and will continue to aggressively investigate any civil rights allegations."
This case was investigated by the FBI’s Jackson Division, with the cooperation of the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Meth Ice Dealer Convicted in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Zachery Joseph Cooley, 38, of Mobile, was convicted in federal court on Thursday for conspiracy to possess with intent to distribute methamphetamine, four counts of distribution and possession with intent to distribute methamphetamine, and three counts of illegal weapon possession. The jury for the trial was selected on Monday, June 26, and the trial commenced on June 27 before Senior District Court Judge Callie V. S. Granade.
The prosecution called 20 witnesses in the two-day trial. The evidence showed that Cooley came to the attention of law enforcement officers when a search warrant was executed at a residence on Willow Creek Drive in Mobile in February of 2016. The Mobile Police Narcotics Unit encountered Cooley in the first bedroom, on his knees packaging five ounces of methamphetamine ice into smaller amounts for distribution. Cooley gave a statement after being advised of his rights that he did not own the methamphetamine ice, but he was a drug dealer and he sold methamphetamine ice to make money to support his daughter. Others in the house gave statements after being advised of their rights that Cooley had traveled to Mississippi the night before the police searched the house, and he brought the methamphetamine ice into the residence.
Cooley was arrested again on September 8, 2016, when he brought methamphetamine ice into a hotel room in Tillman’s Corner where a confidential informant was waiting to get the drugs from a supplier. The informant was equipped with electronic devices to record the activities inside the room, and the video depicted Cooley arriving in the room with the drugs. Mobile County sheriff’s deputies followed Cooley away from the hotel and stopped him as he pulled into a gas station. Cooley was armed with a revolver and the marked money used by the informant to buy the drugs was recovered from his person.
Finally, Cooley was again encountered by law enforcement officers, this time the Mobile County Street Enforcement Narcotics Team (MCSENT). On September 27, 2016, another confidential informant was purchasing methamphetamine from a dealer, who called Cooley to bring the drugs. The officers confronted the dealer after Cooley left, and the dealer agreed to make another controlled purchase of methamphetamine from Cooley the next day. On that date, September 28, 2016, Cooley brought the methamphetamine to the dealer turned informant, and the MCSENT officers followed Cooley to arrest him for the distribution of the drugs. When a marked police car activated its blue lights, Cooley threw two items from his vehicle before he stopped. MCSENT officers subsequently recovered a brown bag containing methamphetamine, a pipe and a tube used to ingest methamphetamine, baggies and two scales. They also recovered a gun. Cooley gave a tape-recorded statement after he was advised of his rights in which he identified several others involved in the methamphetamine distribution business with him, including his suppliers and several local distributors who received meth ice from him. Four of the people who received meth ice from Cooley testified against him during the trial, each having entered into a plea agreement that provided for cooperation in ongoing drug investigations.
Thursday, the jury returned guilty verdicts on 8 of 9 counts. Cooley was acquitted, on one of the two counts of using and carrying a firearm in relation to a drug trafficking felony. Judge Granade set sentencing for October 4, 2017 at 9:30 a.m. Cooley faces a minimum mandatory 10 years to life sentence on the conspiracy charge, and a minimum mandatory consecutive sentence of 5 years on the using and carrying a firearm in relation to a drug trafficking felony count.
The case was investigated by the Mobile Police Department, MCSENT, the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Lima woman sentenced to 17 1/2 years in prison for sex trafficking conspiracyRead the Press Release
A Lima woman was sentenced to more than 17 years in prison for her role in a sex trafficking conspiracy, said Acting U.S. Attorney David A. Sierleja, FBI Special Agent in Charge Stephen D. Anthony and Lima Police Chief Kevin Martin.
Megan Hitt, 29, was sentenced to 210 months in federal prison. Jacqueline Young, 54, was sentenced to four years in prison for obstructing the investigation.
Last month, three people from Lima were sentenced to prison for their roles in the case. Randy Thompson, 26, was sentenced to 24 years in federal prison. Shemeric Cook, 30, was sentenced to 12 years in prison. Precious Russell, 20, was sentenced to nine years in prison.
Hitt, Thompson and others conspired to cause girls, aged 14 and 16, to engage in commercial sex acts in Lima and Fort Wayne, Indiana. They did this by taking and posting sexually explicit photos of the girls on backpage.com, transporting the girls, renting motel rooms for them and negotiating prices, according to court documents.
This took place between November 2015 and January 2016, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Daniel Hurley following an investigation by the Lima Police Department, the FBI and the Northwest Ohio Crimes Against Children Task Force.
Henry County Felon in Possession of Weapons Sentenced to 110 Months in Federal PrisonRead the Press Release
Jackson, TN – Marvin Steinberg, 38, was sentenced to 110 months in federal prison for possession with intent to distribute methamphetamine and being a felon in possession of firearms. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on November 6, 2015, members of the Henry County Sheriff’s Office executed a search warrant at Steinberg’s home in Paris, Tennessee, because of suspected methamphetamine and firearm possession.
Upon execution of the warrant, officers located six firearms, ammunition, and a loaded AK magazine. Officers also found methamphetamine along with digital scales, pipes, a "bong" and a gas mask. Steinburg, who was present, admitted to officers that the methamphetamine and some of the firearms were his.
On June 29, 2017, the Honorable J. Daniel Breen sentenced Steinberg to nearly 10 years’ confinement and received a total of 3 years supervised release to begin after his incarceration.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Henry County Sheriff’s Office; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
Gun Thief Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Byron Chase Williams Champion, 24, of Pine Hill, was sentenced today in federal court on charges involving his theft of weapons and being a prohibited person in possession of firearms. Court documents show that Champion stole firearms from members of his family. These firearms were recovered from various pawnshops, one of which was in Pensacola, Florida. Champion also stole guns from others, some of which were recovered from a pawn shop in Meridian, Mississippi. The investigation also established that Champion was a marijuana user, and as such, he is prohibited from possessing a firearm under federal law. Champion pled guilty to the charges in March of 2017.
United States District Court Judge Kristi K. Dubose sentenced to be imprisoned for 18 months, followed by a three-year term of supervised release. Champion will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, however, the judge ordered that Champion pay $200 in special mandatory assessments.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Gaithersburg Man Sentenced to 5 Years in Prison for Aggravated Identity TheftRead the Press Release
JULY 3, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On June 27, 2017, U.S. District Judge George J. Hazel, sentenced Glenn K. Wilcott, age 55, of Gaithersburg, Maryland, to 5 years in prison, followed by 3 years of supervised release for aggravated identity theft and being a felon in possession of firearms and ammunition.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Richard Ingram of the Department of State, Diplomatic Security Service, Washington Field Office; Special Agent in Charge, Daniel L. Board of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Marshal Johnny Hughes of the United States Marshals Service; Special Agent Michael McGill of the Social Security Administration, Office of the Inspector General and the United States Citizenship and Immigration Services.
According to court documents, on or about April 12, 2014, Wilcott submitted via mail a U.S. Department of State passport renewal form to acquire a new passport in the name of Victim A because the original passport was set to expire on May 17, 2014. During the renewal process, passport adjudicators determined that there were several fraud indicators associated with the application, including a death report related to the Social Security number that Wilcott used in the application. This social security number belonged to Victim A, who died March 6, 2012.
According to his plea agreement, when law enforcement executed a search warrant on Wilcott’s residence, they recovered various firearms and ammunition including a .22 caliber pen gun. Wilcott had previously sustained a conviction for an offense punishable by more than one year of imprisonment, which made him ineligible to possess firearms and ammunition.
Acting United States Attorney Stephen M. Schenning commended the Department of State, Diplomatic Security Service, ATF, the Social Security Administration, the United States Marshal’s Office, and ICE. Mr. Schenning thanked Assistant U.S. Attorneys Jennifer Sykes and Thomas Windom who prosecuted the case.
Former Psychiatrist Sentenced for Social Security FraudRead the Press Release
SAN JUAN, P.R. – Psychiatrist Luis Escabi-Pérez was sentenced to five years of probation, 500 hours of community service and ordered to pay a restitution of $230,244, for fraud in the application process for Social Security Administration (SSA) disability insurance benefits in Puerto Rico, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez.
Escabi-Pérez had plead guilty on July 29, 2015 to committing fraud to the Social Security Administration. Escabi-Pérez’ DEA and medical license were revoked without contest.
Defendant Luis Escabi-Pérez submitted Psychiatric Medical Reports to the SSA in support of applications for disability insurance benefits submitted by his patients. Escabi-Pérez charged a fee for the medical visits, typically in the amount of $100.00. In addition, the defendant typically charged a fee in the amount of $500.00, for the preparation and submittal of a Psychiatric Medical Report to the SSA. He would at times also charge additional fees of up to $5,000 to backdate medical records in order to create the appearance of a longer history of medical treatment.
The case was investigated by the Social Security-OIG with the collaboration of the FBI and the Puerto Rico Police Department. Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez prosecuted the case.
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Felon in Possession of a Firearm Sentenced in Federal CourtRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Lance James Heine, 34, of Citronelle, was sentenced today in federal court on charges involving his being a prohibited person in possession of a. firearm. Court documents show that Heine was involved in a shoot-out in the Pleasant Circle subdivision in Citronelle in May of 2014. Citronelle police responded and found Heine hiding in some bushes near the McDavid Jones Elementary School. He was holding a pistol when he was apprehended. Heine pled guilty to the charges in February of 2017.
United States District Court Judge Kristi K. Dubose sentenced Heine to 24 months in prison, to be followed by a three-year term of supervised release. Heine will undergo treatment for drug abuse while in prison and as a condition of his supervised release. No fine was imposed, however, the judge ordered that Heine pay $100 in special mandatory assessments.
The case was investigated by the Citronelle Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Federal Jury Convicts Burleson Man of Child Pornography ChargesRead the Press Release
DALLAS — Following a one-week trial in Dallas, Texas, before U.S. District Judge Sidney A. Fitzwater, a federal jury has convicted Daryl Glenn Pawlak, 39, of Burleson, Texas, of two counts of child pornography offenses. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Specifically, late Friday afternoon, the jury convicted Pawlak of one count of receipt of child pornography and one count of access with intent to view material containing child pornography involving a prepubescent minor. Pawlak faces a maximum statutory penalty of 20 years in federal prison for each count and a $250,000 fine. Following the verdict, Judge Fitzwater remanded Pawlak into custody. Sentencing is set for October 20, 2017.
This case arose from an FBI undercover operation involving an illegal member-only hidden-services website called Playpen. Playpen was dedicated to the advertisement and distribution of child pornography. Because Playpen operated as a hidden-services site, it was only available to users of the TOR network. The TOR network allows users and hidden-services sites anonymity by concealing the actual IP addresses of users and hidden-services sites.
Playpen categorized posts containing child pornography within forums and sub-forums according to the victim child’s age, gender, and type of sexual abuse endured, such as “Girls HC,” “Incest,” and “Toddlers.” Many of these posts displayed a preview image of child pornography, a link to download more child pornography, and a password to open the downloaded files. The website itself required a username and password to enter. Approximately 417,000 usernames were registered on Playpen at the time it was removed from the Internet.
Through the course of its investigation, the FBI discovered that the Playpen website was being run from within the United States. The FBI seized the server hosting the Playpen website and made the decision to conduct a limited, monitored, authorized two-week operation to catch individuals who had logged onto the site and clicked on certain posts within the site.
Pawlak was one of the individuals caught as a result of the FBI’s operation. Pawlak registered the username “notsoslow” with Playpen in September 2014 and had spent approximately 14.6 hours logged into the website prior to the FBI’s two-week operation.
The government presented evidence at trial showing on the morning of March 4, 2015, the last day of the FBI’s operation, Pawlak logged onto the Playpen site as user “notsoslow,” using his work computer at his house in Burleson, Texas. After clicking on a post within the site, the FBI deployed a network investigative technique (NIT) to “notsoslow’s” computer. The NIT instructed “notsoslow’s” computer to send to the FBI certain identifying pieces of information, including the actual IP address that was connecting the computer to the Internet, the MAC address of the network interface card of the computer, the name of the computer, and the username logged onto the computer.
Computer data captured as a result of the NIT showed that the MAC address, computer name, and username were consistent with having come from a computer that was provided to Pawlak by his employer (Employer One). The actual IP address resolved to Pawlak’s home address in Burleson, Texas. Forensic artifacts from this work computer showed that user “d.pawlak” had logged onto the computer earlier that morning and downloaded WinZip, a program that could be used to decompress files similar to many that were contained in Playpen.
Computer data collected during the FBI’s operation showed that a few minutes after the NIT deployed, user “notsoslow” navigated and clicked on two posts containing prepubescent child pornography, both of which were hosted in the “Pre teen Photos” “Girls HC” section of Playpen. Data from the Playpen server reflected that “notsoslow” had spent approximately 90 minutes logged into the site during the FBI’s two-week operation.
The government also presented evidence that two different work computers that had been assigned to Pawlak by two different employers both contained prepubescent child pornography in files associated with Pawlak’s computer usernames. The computer assigned to Pawlak by Employer One had forensic artifacts reflecting that the TOR browser had been installed, deleted, and reinstalled several times while the computer was assigned to Pawlak. The FBI also found forensic artifacts associated with the Playpen site, as well as file names consistent with child pornography. The jury heard testimony at trial that it appeared that Pawlak had undertaken some efforts to delete evidence of child pornography before returning the computer to Employer One.
On Pawlak’s second work computer, which had been assigned to him for merely three months, the FBI found over 800 images of child pornography and videos of child pornography depicting prepubescent children. Forensics also revealed that software used to wipe a computer’s hard drive was downloaded onto the computer shortly before Pawlak’s employer sent it to the FBI.
The FBI spoke with Pawlak as a part of its investigation. Pawlak confessed that he had been using his work computers to look at child pornography. He told the FBI that he began looking at child pornography sometime in 2012, he used TOR to find child pornography, and estimated that he had spent, on average, approximately half an hour a week on child pornography. Pawlak told the FBI that he preferred child pornography that depicted girls between the ages of 7-11 years old.
As a result of the FBI’s operation, at least 350 U.S.-based individuals have been prosecuted nationwide. At least 55 American children who were subjected to sexual abuse have been successfully identified or rescued, including at least four in the North Texas area. This case was prosecuted as a part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The FBI investigated this case. Assistant U.S. Attorneys Jamie L. Hoxie and Paul Yanowitch are in charge of the prosecution.
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Executive Office for Immigration Review Announces New Acting Deputy DirectorRead the Press Release
FALLS CHURCH, VA - The Executive Office for Immigration Review (EOIR) today announced the appointment of Katherine H. Reilly as the agency’s Acting Deputy Director. Ms. Reilly has served as Chief Counsel of the Employee and Labor Relations Unit within EOIR’s Office of General Counsel since December 2013.
"Katherine’s varied and impressive legal experience makes her well-suited for assuming the position of Acting Deputy Director at EOIR, especially during this important time when we are mobilizing all of our resources to combat a growing caseload," said Acting Director James McHenry. "The skills she has acquired as a manager and through her work in employee and labor relations are critical for the agency, both to meet its current challenges and to establish effective policies and procedures for the future."
In her new capacity as Acting Deputy Director, Ms. Reilly will supervise EOIR’s components and will be responsible for assisting in leading the agency in formulating and administering policies and strategies which enhance EOIR’s effectiveness in fulfilling its core mission of adjudicating cases fairly, expeditiously, and uniformly
Katherine H. Reilly joined EOIR in December 2013 as Chief Counsel of the Employee and Labor Relations Unit within the Office of General Counsel. Prior to her tenure with EOIR, she was the Director of Legal Services for the U.S. Postal Service Office of Inspector General, managing that agency’s employee relations team, civil litigation section, and contracting division. Ms. Reilly also served as a Special Assistant U.S. Attorney for criminal prosecutions in the Northern District of Texas. She began her career with the Federal Trade Commission as an antitrust attorney and also worked for a law firm, advising corporate clients on antitrust and commercial litigation. Ms. Reilly received her Bachelor of Arts and Juris Doctor degrees from the University of Texas at Austin and earned a Master of Laws degree from the University of Melbourne, Australia. Ms. Reilly is a member of the District of Columbia and Virginia bars.
Euclid woman indicted for fraudulently receiving $335,000 in benefits over two decadesRead the Press Release
A federal grand jury indicted Gwendolyn Cox-Johnson, 68, of Euclid, for theft of government funds, said David A. Sierleja, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that over a period of 23 years, Cox-Johnson fraudulently received approximately $335,000 in benefits from the Social Security Administration to which she was not entitled.
The Social Security Administration Office of the Inspector General conducted the investigation. Special Assistant United States Attorney Lisa J. Sanniti is prosecuting the case.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Dallas Woman Sentenced to 12 Months and 1 Day in Federal Prison for Stealing Government MoneyRead the Press Release
DALLAS — Tasha Lashaun Wilson, of Dallas, was sentenced last Friday by Chief U.S. District Judge Barbara M. G. Lynn to serve a prison sentence of 12 months and one day for theft of government funds, announced U.S. Attorney John Parker of the Northern District of Texas.
Wilson pleaded guilty in July 2015 to one count of theft of government money. Chief Judge Lynn ordered that Wilson be immediately remanded into federal custody at the conclusion of the sentencing hearing. Wilson was also order to pay back the loss to the government, none of which Wilson had attempted to pay back prior to the sentencing hearing.
According to documents filed in the case, on October 24, 2012, the United States Department of Housing and Urban Development (HUD) Office of Inspector General (OIG) received information about a Housing Choice Voucher Program (HCV) tenant believed to have a financial interest in the residence where she was living in Frisco, Texas.
A review of Wilson’s Dallas Housing Authority (DHA) tenant file revealed that she had been a HCV program participant since 2003. It was also determined that Wilson received United States Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefits and Medicaid assistance.
In 2010, Wilson was looking for a place to live while she was a participant in the HCV program. Wilson’s friend agreed to sign up to be an approved landlord in the HCV program so Wilson could live in his house in Frisco, Texas while she remained in the HCV program. As part of the process to be approved as a landlord, Wilson’s friend submitted a direct deposit form into which DHA would deposit money to subsidize Wilson’s rent. This direct deposit form listed a bank account to which both Wilson and her friend were signatories, but the submitted form did not disclose Wilson as a signatory to the account. Wilson told investigators that prior to submitting the direct deposit form, she told her friend that disclosing Wilson as a signatory to the joint bank account would be a problem because it would get her kicked out of the HCV program. Wilson’s friend told her that he would make sure Wilson’s name did not appear on the direct deposit form.
In September of 2010, Wilson completed and submitted an application to have her HCV rental subsidy transferred to her friend’s house in Frisco, Texas. From 2010 through into 2014, DHA deposited money into the joint bank account believing that it was sending money to Wilson’s landlord to subsidize her rent. Instead, Wilson accessed and spent the money at retailers and restaurants. Wilson was required to go through an annual re-certification process through which she was required to report income; Wilson did not disclose to DHA or HUD that she had access to, and was spending money from, the joint bank account. When confronted by law enforcement, Wilson admitted that she actively concealed the joint bank account because she knew that if she had reported it, she would have been kicked out of the HCV program.
An analysis of Wilson’s DHA HAP payments history from November 1, 2010, through February 28, 2014, revealed losses to DHA/HUD totaling $60,073.00. Similarly, an analysis of Wilson's SNAP benefit payments and Medicaid payments made during the same time period reveal losses to the government totaling $7,370.00 and $9,836.37, respectively.
HUD investigated the case. Assistant U.S. Attorney Jamie L. Hoxie prosecuted.
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Complaint Filed Against Rapper Ricky L. Hampton, aka Finese2Tymes, for Felon in Possession of a FirearmRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, and Jeffrey B. Reed, Resident Agent-in-Charge of the Little Rock Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced today that a Complaint has been filed against Ricky L. Hampton, 25, of Memphis, Tennessee, for felon in possession of a firearm in violation of 18 U.S.C. 922(g)(1).
The complaint alleges that on June 25, 2017, Ricky L. Hampton, aka “Finese2Tymes” was at Club Envy in Forrest City, Arkansas. As Hampton, a Memphis rapper, was leaving the club, he began screaming at a person in a car that he believed was blocking his way. As Hampton got into his car, he continued screaming at the person to move out of his way. Hampton became impatient with that person in the other vehicle and pointed an AK-style pistol at that person. As that person drove away, Hampton fired a shot that shattered the rear window and struck the driver of the other vehicle in the neck. The weapon Hampton used, a Century Arms, model RAS 47, 7.62 caliber pistol, has been recovered by law enforcement.
Hampton was convicted in Tennessee of felony aggravated robbery, for which he was sentenced to eight (8) years in prison.
Acting U.S. Attorney Patrick C. Harris and Jeffrey B. Reed, Resident Agent-in-Charge jointly stated that, “Through the collaborative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Federal Bureau of Investigation, the Forrest City Police Department, the First Judicial Circuit States Attorney’s Office, and the United States Attorney’s Office, this alleged violent offense will proceed through the judicial process. The U.S. Attorney’s Office and ATF are committed to working with federal, state and local partners to address violent firearm offenses within the state of Arkansas.”
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Angela Jegley and Cameron McCree.
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Cleveland man indicted for using firearm to rob Family Dollar storeRead the Press Release
A Cleveland man was indicted for using a firearm while robbing a Family Dollar store, said Acting U.S. Attorney David A. Sierleja.
Donathan Kidd, 21, was indicted on one count of Hobbs Act robbery and one count of using a firearm in a crime of violence.
Kidd robbed the Family Dollar store at 14235 Kinsman Road in Cleveland on April 29. He used a firearm during the robbery, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Brian McDonough following an investigation by the ATF and Cleveland Division of Police.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Akron man indicted for having fentanyl and a firearmRead the Press Release
An Akron man was indicted for having fentanyl and a firearm, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Kenneth Gay, 26, was arrested at his residence in Akron during the execution of a search warrant by the Summit County Drug Unit and the Summit County Sheriff’s S.W.A.T. team. Officers found Gay to be in possession of the firearm and fentanyl.
Gay has been previously convicted of improperly handling a firearm in a motor vehicle and trafficking in marijuana.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorney Mark S. Bennett following an investigation by the Summit County Sheriff’s Office, Akron Police Department, DEA and ATF.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
2 July 2017
Rosebud Man Sentenced for Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been convicted of Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled Substance and was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Lloyd One Star, age 27, was sentenced to 5 months in custody followed by 5 months home confinement, 3 years of supervised release, a fine of $1,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
One Star was indicted by a federal grand jury on November 9, 2016. He pled guilty on February 7, 2017.
The conviction stems from a traffic stop on March 7, 2016. A K9 alerted on the vehicle and the officers found several baggies containing methamphetamine, a Schedule II Controlled Substance. One Star admitted that he received distributable quantities of methamphetamine and that he engaged in distribution
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
One Star was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Laverne White Hose, age 28, was sentenced to 6 months in custody, followed by 6 months of home confinement, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Horse was indicted by a federal grand jury on October 12, 2016. He pled guilty on April 11, 2017.
The conviction stemmed from an incident that occurred during a traffic stop near Mission, on August 13, 2016. White Horse, who was initially stopped for an equipment violation, was subsequently arrested for Driving Under the Influence. As he was being arrested, White Horse became uncooperative and belligerent with the arresting officer, a Rosebud Sioux Tribe Police Officer. After the officer placed White Horse in wrist restraints, White Horse spitvbdirectly in the officer’s face.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
White Horse was immediately turned over to the custody of the U.S. Marshals Service.